Mortgage application activity was mostly flat last week, according to data from the Mortgage Bankers Association (MBA).
The Market Composite Index, the MBA’s measure of mortgage loan application volume, dipped by 0.7% on a seasonally adjusted basis from one week earlier; the unadjusted index was down by 0.4%.
Both the seasonally adjusted and the unadjusted Purchase Index decreased 0.2% from one week earlier, while the unadjusted index was also 16% lower than the same week one year ago. The Refinance Index decreased 2% from the previous week and was 9% lower than the same week one year ago, while the refinance share of mortgage activity decreased to 30.8% of total applications from 31.2% the previous week.
Among the federal programs, the FHA share of total applications decreased to 12.0% from 12.1% the week prior while the VA share of total applications also decreased to 12.0% from 12.1% and the USDA share remained unchanged from 0.5% the week prior.
“Purchase applications were essentially unchanged, as homebuyers continue to hold out for lower mortgage rates and for more listings to hit the market,” said Joel Kan, MBA’s vice president and deputy chief economist. “Lower rates should help to free up additional inventory as the lock-in effect is reduced, but we expect that will only take place gradually, as we forecast that rates will move toward 6% by the end of the year. Similarly, with rates remaining elevated, there is very little incentive right now for rate/term refinances.”
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